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Soros May Raise 14.8% Stake in Hainan Air, People Say

October 28, 2005
insider

U.S. financier George Soros may invest another $25 million in Hainan Airlines Co., part of a plan to reorganize China's fourth-largest carrier, fund acquisitions and growth, three company executives said.

Soros, who paid about $24 million in 1995 for 14.8 percent of Hainan Airlines, may sign the investment agreement during a visit this weekend to the carrier on southern China's Hainan island, said the officials who declined to give their names or additional details. Michael Vachon, communications director of New York-based Soros Fund Management Llc, declined to comment.


http://www.bloomberg.com/apps/news?pid=10000080&sid=aLIaIMvL8H4w


Rating: 2.0/5 (1 vote)

Comments

AlexGabor
AlexGabor - 8 years ago
Pan American Holdings to Invest Up to $100 Million in Newly Established Grand China Airlines, Letter of Intent Signed in Haikou, China, on April 1, 2006

New York, United States -- Business Wire (Business Wire India)

Pan American Holdings, a Cayman Islands-based aircraft investment vehicle, completed its signing protocol in a Letter of Intent (LOI) with Hainan Airlines to invest between $60 million and $100 million, the equivalent of an 11 to 18 percent stake in the airline's new parent company Grand China Airlines (GCA). This protocol included agreement for a down payment and is pending approval of the Ministry of Commerce in Beijing.

If the LOI is approved by the Government, Pan American Holdings will become at least the second largest foreign investor in the new Chinese airline. The largest single investor currently is American Aviation LDC, a George Soros-owned investment vehicle. Bharat Bhise, Director of Pan American Holdings, indicated that full payment of the purchase would be complete by the end of 2006.

According to Hainan Chairman & CEO, Chen Feng, the decision to sell a percentage of Grand China Airlines enables Hainan to better its balance sheet and, in time, to raise funding for its planned listing on the Hong Kong stock exchange.

Grand China Airlines, owner of Hainan Airlines, will also own Hainan's other subsidiaries: Xinhua Airlines, Changan Airlines and Shanxi Airlines. Another pending acquisition is CR Airways, a Hong Kong-based carrier which will likely be part of GCA. Hainan Airlines is based in Haikou, Hainan, People's Republic of China.

It is publicly traded on the Shanghai Stock exchange and has Chinese “A“ shares and foreign “B“ shares, as well as Hong Kong “H“ shares. It is the largest non-government airline in China, and the fourth largest airline of China, including the big three Government airlines China Eastern, China Southern and Air China. Hainan operates a scheduled domestic services network with a fleet of 115 aircraft that includes Boeing 737 and 767 variants, as well as Airbus A319-100 and Boeing 777 and 787 aircraft on order. International flights were launched in 2005.

A former director of Hainan Airlines and now a senior advisor to top management, Mr. Bhise is the CEO of Bravia Capital Partners in New York.

In 1995, Mr. Bhise led the effort for the Soros investment vehicle to purchase a stake in Hainan Airlines, which positioned Mr. Soros as the largest investor in the airline at 25 percent.

After subsequent share offerings, the Soros-controlled percentage was reduced to 14.8 percent. This transaction was completed within Mr. Bhise's role as President of C-S Aviation, at that time.



AlexGabor
AlexGabor - 7 years ago
Hainan Airlines Links and Info:


The airline was established in October 1989 as Hainan Province Airlines. It then renamed as Hainan Airlines and became China's first joint-stock air transport enterprise in January 1993 and began scheduled services on 2 May 1993. Executive jet operations with a Learjet 55 were added in April 1995. In 1998 it became the first Chinese airline to own shares in an airport when it purchased a 25% stake in Haikou Meilan International Airport. Hainan Airlines has 8,000 employees (at January 2005).

It owns stakes in a range of airlines: Shanxi Airlines (92.51%), Changan Airlines (73.51%), China Xinhua Airlines (60%), Shilin Airlines (48.9%) and Yangtze River Express (15%).

http://en.wikipedia.org/wiki/Hainan_Airlines

http://www.malev.hu/BP/ENG/I_CORPORATEPARTNERSHIP_ENG/2004-0731-1853-31BHMQ.asp

International financier George Soros has successfully expanded his investment in Hainan Airlines, pouring another US$25 million into China's fourth-largest carrier.

http://www.chinadaily.com.cn/english/doc/2005-10/17/content_485469.htm

http://www.hnair.com/en/
AlexGabor
AlexGabor - 7 years ago
NPS Pharmaceuticals (NPSP) gained on news that billionaire investor George Soros had increased his stake in the Salt Lake City-based company, according to a filing with the Securities and Exchange Commission, to 7.1% from 6.8%. Soros controls nearly 3.3 million shares of the company through Quantum Partners, which is an affiliate of Soros Fund Management. Shares gained 15 cents, or 3.13%, to $4.95.
AlexGabor
AlexGabor - 7 years ago
Shanghai Daily - Shanghai,China

HAINAN Airlines Co, partly owned by US billionaire George Soros, has raised 5.6 billion yuan (US$700 million) in a share sale as it looks to buy more aircraft

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